Zinc prices have risen and fallen sharply this week
| Gamma-PGA (gamma polyglutamic acid) |
According to the Commodity Market Analysis System of Shengyishe, as of April 23rd, the zinc price was 22314 yuan/ton, a decrease of 1.61% compared to the fluctuating zinc price of 22680 yuan/ton on April 15th. This Saturday is a trading day, with zinc prices exceeding 300 yuan/ton for three trading days, and within 100 yuan/ton for the other three trading days. Macroeconomic fluctuations are frequent, and zinc prices have risen and fallen sharply this week.
The expectation of the Federal Reserve lowering interest rates has decreased
The month on month growth in retail sales in the United States in March was stronger than expected, weakening investor expectations for the Federal Reserve’s interest rate cut. US bond yields quickly broke through high levels, and the US dollar index jumped to a five month high. The US dollar index has been consolidating at high levels this week. Federal Reserve officials are hawkish in their statements, and expectations of interest rate cuts have fallen to freezing point.
Risk mitigation in the Middle East region
The Iranian Foreign Minister stated that if the conflict in the Gaza Strip stops, peace will be restored to the entire Middle East region, and everyone, including Iran, will benefit from peace. The risk in the Middle East region has eased, and the risk aversion sentiment has cooled down, while the sentiment of rising non-ferrous metals has fallen.
Future Market Forecast
According to data analysts from Business Society, the risk in the Middle East region has eased, the US dollar index is high, and coupled with the expectation of the Federal Reserve’s interest rate cut falling to freezing point, the cautious sentiment in the zinc market continues to rise, increasing the pressure on zinc prices to fall. Recently, the black sector has rebounded from a low level, and the consumption of galvanized steel has improved. Downstream enterprises have slowly recovered their operating rates, and the consumption of zinc in the market is favorable. In April, domestic zinc mines resumed operation, and the tight supply was improved. The profits of zinc smelters increased, and zinc production increased. Overall, both supply and demand in the zinc market have rebounded, while macro sentiment has fluctuated and zinc prices have fallen. In the future, the macro aspect of the zinc market should focus on the US dollar index and the situation in the Middle East.http://www.lubonchem.com/